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Access to water as a determinant of rental values: A hedonic analysis in Rwanda

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Author Info

  • Johanna Choumert

    (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I)

  • Jesper STAGE

    (Mid Sweden University - Mid Sweden University - Mid Sweden University)

  • Claudine UWERA

    (University of Gothenburg - University of Gothenburg - University of Gothenburg)

Abstract

In this paper, we study the determinants of rental values in urban housing markets in Kigali, Rwanda. In particular, we study the value of access to piped water; due to the high costs associated with installing new piped connections, renting a property with an existing connection is often the only way for low income households to access piped water. Our results indicate that extending the piped network to a new house will in many cases raise the rental value of the house enough to pay for the cost of installing the new connection in less than two years.

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Bibliographic Info

Paper provided by HAL in its series Working Papers with number halshs-00939271.

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Date of creation: 30 Jan 2014
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Handle: RePEc:hal:wpaper:halshs-00939271

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Related research

Keywords: Africa; rwanda; water access; hedonic price; real estate; non-market valuation;

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References

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  1. NAUGES Céline & WHITTINGTON Dale, 2008. "Estimation of Water Demand in Developing Countries: An Overview," LERNA Working Papers 08.20.264, LERNA, University of Toulouse.
  2. Nauges, Céline & Van Den Berg, Caroline, 2009. "Perception of Health Risk and Averting Behavior: An Analysis of Household Water Consumption in Southwest Sri Lanka," TSE Working Papers 09-139, Toulouse School of Economics (TSE).
  3. Cassel, Eric & Mendelsohn, Robert, 1985. "The choice of functional forms for hedonic price equations: Comment," Journal of Urban Economics, Elsevier, vol. 18(2), pages 135-142, September.
  4. Baisa, Brian & Davis, Lucas & Salant, Stephen W. & Wilcox, William, 2008. "The Welfare Costs of Unreliable Water Service," MPRA Paper 9812, University Library of Munich, Germany.
  5. Michael Els & Dieter Von Fintel, 2010. "Residential Property Prices In A Submarket Of South Africa: Separating Real Returns From Attribute Growth," South African Journal of Economics, Economic Society of South Africa, vol. 78(4), pages 418-436, December.
  6. Paul K. Asabere, 2004. "The Pricing of the Emergent Leasehold (Possessory) Estates of Ghana," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 32(4), pages 673-694, December.
  7. Cropper, Maureen L & Deck, Leland B & McConnell, Kenneth E, 1988. "On the Choice of Functional Form for Hedonic Price Functions," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 668-75, November.
  8. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
  9. Jalan, Jyotsna & Somanathan, E., 2008. "The importance of being informed: Experimental evidence on demand for environmental quality," Journal of Development Economics, Elsevier, vol. 87(1), pages 14-28, August.
  10. Paul Kwadwo Asabere, 1981. "# The Determinants of Land Values in an African City: The Case of Accra, Ghana," Land Economics, University of Wisconsin Press, vol. 57(3), pages 385-397.
  11. Nauges, Celine & Strand, Jon, 2007. "Estimation of non-tap water demand in Central American cities," Resource and Energy Economics, Elsevier, vol. 29(3), pages 165-182, September.
  12. Onjala, Joseph & Ndiritu, Simon Wagura & Stage, Jesper, 2013. "Risk Perception, Choice of Drinking Water, and Water Treatment: Evidence from Kenyan Towns," Discussion Papers dp-13-10-efd, Resources For the Future.
  13. Gulyani, Sumila & Talukdar, Debabrata, 2008. "Slum Real Estate: The Low-Quality High-Price Puzzle in Nairobi's Slum Rental Market and its Implications for Theory and Practice," World Development, Elsevier, vol. 36(10), pages 1916-1937, October.
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Cited by:
  1. Johanna CHOUMERT & Eric Nazindigouba KERE & Amandine Loyale LARé, 2014. "The impact of water and sanitation access on housing values: The case of Dapaong, Togo," Working Papers 201403, CERDI.

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